Asset Management One Co. Ltd. Boosts Stake in Cadence Design Systems, Inc. $CDNS

Key Points

• Asset Management One Co. Ltd. increased its stake in Cadence Design Systems by 3.1%, owning 121,448 shares valued at approximately $37.4 million as of the end of the most recent quarter.
• Cadence Design Systems reported a 20.2% year-over-year revenue growth with earnings per share of $1.65, exceeding estimates, and set its FY 2025 guidance at 6.850-6.950 EPS.
• Market analysts have a generally positive outlook on Cadence, with the average price target rising to $369.71, supported by multiple "buy" ratings.

Asset Management One Co. Ltd. increased its position in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 3.1% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 121,448 shares of the software maker's stock after buying an additional 3,602 shares during the period. Asset Management One Co. Ltd.'s holdings in Cadence Design Systems were worth $37,424,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Smallwood Wealth Investment Management LLC purchased a new stake in shares of Cadence Design Systems in the first quarter worth about $25,000. Costello Asset Management INC purchased a new stake in Cadence Design Systems during the first quarter valued at approximately $25,000. Saudi Central Bank purchased a new stake in Cadence Design Systems during the first quarter valued at approximately $27,000. Valley National Advisers Inc. raised its position in Cadence Design Systems by 707.1% during the first quarter. Valley National Advisers Inc. now owns 113 shares of the software maker's stock valued at $28,000 after purchasing an additional 99 shares during the period. Finally, Barrett & Company Inc. purchased a new stake in Cadence Design Systems during the second quarter valued at approximately $31,000. 84.85% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Design Systems Trading Up 2.3%

Shares of NASDAQ CDNS opened at $345.10 on Friday. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.67 and a current ratio of 2.82. The business's 50 day moving average price is $346.99 and its 200-day moving average price is $322.08. Cadence Design Systems, Inc. has a fifty-two week low of $221.56 and a fifty-two week high of $376.45. The company has a market cap of $94.04 billion, a price-to-earnings ratio of 93.27, a PEG ratio of 4.42 and a beta of 0.99.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings results on Monday, July 28th. The software maker reported $1.65 earnings per share for the quarter, topping the consensus estimate of $1.56 by $0.09. Cadence Design Systems had a return on equity of 29.65% and a net margin of 19.88%.The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. During the same period in the prior year, the business posted $1.28 earnings per share. The company's revenue for the quarter was up 20.2% on a year-over-year basis. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS. On average, sell-side analysts expect that Cadence Design Systems, Inc. will post 5.41 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Loop Capital upped their price objective on Cadence Design Systems from $370.00 to $390.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Needham & Company LLC upped their price objective on Cadence Design Systems from $325.00 to $390.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Rosenblatt Securities restated a "neutral" rating and set a $320.00 price objective on shares of Cadence Design Systems in a research report on Wednesday. Wall Street Zen downgraded Cadence Design Systems from a "buy" rating to a "hold" rating in a research report on Sunday, September 21st. Finally, BNP Paribas started coverage on Cadence Design Systems in a research report on Thursday, October 2nd. They set an "outperform" rating and a $400.00 price objective on the stock. Thirteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Cadence Design Systems has an average rating of "Moderate Buy" and an average target price of $369.71.

Insiders Place Their Bets

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $334.51, for a total transaction of $60,211.80. Following the transaction, the director directly owned 7,830 shares in the company, valued at $2,619,213.30. This trade represents a 2.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO John M. Wall sold 7,500 shares of the firm's stock in a transaction on Tuesday, September 30th. The stock was sold at an average price of $349.16, for a total value of $2,618,700.00. Following the transaction, the chief financial officer owned 70,715 shares in the company, valued at $24,690,849.40. The trade was a 9.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 10,680 shares of company stock worth $3,729,852 in the last ninety days. 1.99% of the stock is owned by company insiders.

Cadence Design Systems Profile

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.

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